Delaware LLC Franchise Tax — Step 6 of 8
Here's the good news that trips people up: Delaware's LLC franchise tax is a flat $300 a year — that's it. No revenue formulas, no asset calculations, and no annual report to file (that's a corporation thing). The one rule that matters is the date: it's due every June 1, and missing it triggers a steep penalty. Here's how it works, with a calculator for your exact due dates.
Every Delaware LLC owes a flat $300 annual franchise tax, due June 1 each year — regardless of income or activity. Your first payment is due June 1 of the year after you form. There's no annual report for LLCs. Pay late and you owe a $200 penalty plus 1.5% interest per month. Pay online at the Division of Corporations.
- Amount
- $300 flat
- Due date
- June 1
- Frequency
- Every year
- Annual report?
- None
- Late penalty
- $200 + 1.5%/mo
- Pay at
- corp.delaware.gov
- Next step
- Step 7 →
How the Delaware Franchise Tax Works
"Franchise tax" sounds complicated, but for an LLC it's the simplest tax you'll deal with. It's not based on income, revenue, or assets — it's a flat annual fee of $300 that every Delaware LLC pays just for the privilege of being a Delaware entity. Whether your LLC made millions or did nothing at all, the tax is the same $300.
- Flat $300 — the same for every LLC, every year, with no calculations.
- Due June 1 every year, for the prior calendar year.
- No annual report for LLCs — only corporations file one. You just pay the tax.
- Your first payment is due June 1 of the year after you form — not in your formation year.
LLCs and corporations are taxed differentlyDon't confuse the two. Delaware corporations face a variable franchise tax (often hundreds or thousands of dollars) and must file an annual report. Delaware LLCs pay the simple flat $300 and file no report. This page is about LLCs.
Franchise Tax Due-Date & Penalty Calculator
Enter your LLC's formation date to see your first and next due dates. The amount is always $300 — but if you've slipped past a deadline, the penalty estimator shows what late really costs:
Estimate only. Interest is calculated at 1.5% per month on the $300 tax; Delaware applies the $200 penalty once a payment is late. Confirm exact amounts with the Division of Corporations.
How & When to Pay
- Pay online at the Delaware Division of Corporations using your entity's file number.
- Mark June 1 on your calendar each year — the date never changes, so it's easy to automate a reminder.
- Let your registered agent help — most agents forward a reminder, and some can pay on your behalf.
Missing June 1 gets expensive fastA late payment adds a $200 penalty plus 1.5% interest per month on the balance. Worse, an LLC that stops paying falls out of good standing — which can block you from getting a certificate of good standing (needed for loans, banking, or expanding into other states) and can eventually lead to administrative cancellation. On a $300 bill, a $200 penalty is painful; set the reminder.
- ✓Sends franchise-tax reminders before June 1
- ✓Free Delaware registered agent the first year
- ✓Keeps your LLC in good standing
- ✓No upsells · No data selling · Privacy by Default
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Delaware Franchise Tax — FAQ
Ahmad Adil is the founder and CEO of LLC School. The figures here — the flat $300 franchise tax, the June 1 due date, the first-payment-the-following-year rule, the absence of an LLC annual report, and the $200 + 1.5%/month late penalty — were verified against the Delaware Division of Corporations. This is educational information, not tax advice.
About Ahmad Adil → Delaware LLC Overview →